Capital requirements

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Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.

Capital Requirements

In banking regulation, the amount of money a bank must have available to cover withdrawals, closed accounts, and other account-related expenses. While each jurisdiction computes capital requirements differently, Basel II provides a framework many countries follow; it describes capital requirements as a percentage of a bank's risk-weighted assets. Capital requirements are important for bank solvency, and, in difficult times, reduce the pressure for bank runs.
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The Department of Trade and Industry (DTI) is open to further liberalization of domestic retail trade to full foreign ownership, but seeks to impose minimum capital requirement for the small and micro retailers to protect the lowly sari-sari stores.
DTI vows protection for sari-sari stores from full retail trade lib
The new regulation sets the capital requirement for each class of insurance business, and requires each insurance company to maintain a minimum capital requirement based on the category of insurance activity being undertaken by a company.
Central bank of Liberia to close delinquent insurance companies
Islamabad -- The Securities and Exchange Commission of Pakistan (SECP), with the approval of its Policy Board, has increased the minimum paid up capital requirement for insurance companies.
SECP increases minimum paid-up capital requirement for insurers
The FSC will replace the NCR rules with the 'minimum capital requirement', which includes regulatory capital requirement, capital requirement for client asset management, and capital requirement for proprietary investments.
Measures to improve prudential regulations on asset management industry
Calibration of this continuous-time model suggests that the optimal capital requirement exceeds 20 percent of assets, far above the levels proposed in the most recent draft of the Basel III capital standards.
Capital requirements for financial firms
British capital requirement rules don't apply to resident foreign bank branches located in-country but with headquarters abroad.
The challenge of macro-Prudential regulation
Bank capital is usually regulated by requiring banks to meet or exceed a minimum capital requirement, which is specified by ratios of various measures of capital to assets.
Countercyclical capital regulation: should bank regulators use rules or discretion?
If they cannot do that, they must merge to reach the new capital requirement.
All six private banks are ordered to boost capital
where: RO--the capital requirement for operational risk, PR--the capital requirements for risks other than credit risk (reflected by the RWA), and operational risk.
The structure of the total capital requirement after the implementation of capital requirements directive in the polish banking system
He presumes that the mean path for these losses is already cyclical and shows via simulations that a risk-based capital requirement is likely to have procyclical effects, which he suggests can be partially offset only by "judicious calibration" of minimum capital requirements during a downturn.
Bank capital regulation, economic stability, and monetary policy: what does the academic literature tell us?
OFHEO has determined that Fannie Mae's minimum capital requirement was $24.
OFHEO determines Fannie and Freddie adequately capitalized. (Business Alert)
Many institutions had found ways to hold extensive off-balance-sheet assets that added substantially to risk but carried no regulatory capital requirement.
Dr. Bill

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